QUESTION Which of the following is most likely to be implemented by a country as a part of deregulation? A. Prohibition of private enterprises from operating in certain sectors B. Commitment toward communism C. Removal of price controls D. Centrally planned economic system E. Increased restrictions on foreign direct investment ANSWER C Deregulation involves […]
QUESTION The United Nation of Zorwaya has strict restrictions on direct investment by foreign enterprises, and it opposes the establishment and operation of private enterprises. The highest authority in the country enforces tight control over prices and production output. According to this information, the United Nation of Zorwaya most likely opposes: A. nationalization of private […]
QUESTION Which of the following is most likely to indicate that the nation of Erbia has adopted deregulation? A. The Erbian government exercises tight control over the prices of food grains. B. The establishment of private enterprises in steel industry is prohibited by the Erbian government. C. The retail sector in Erbia has been opened […]
QUESTION Which of the following steps is most likely to be involved in the deregulation of an economy? A. Increasing restrictions on direct investment by foreign enterprises and international trade B. Privatizing state-owned enterprises C. Exercising a high degree of state control over production and pricing D. Abolishing laws related to the protection of property […]
QUESTION Which of the following movements started in Great Britain in the early 1980s when then Prime Minister Margaret Thatcher started to sell state-owned assets such as the British telephone company? A. Nationalization B. Privatization C. Anti-democratic D. Communist E. Anti-globalization ANSWER B The privatization movement started in Great Britain in the early 1980s […]
QUESTION Which of the following statements is true about privatization? A. The privatization movement started in China in the early 1980s. B. Privatization involves replacing a state-owned monopoly with a private monopoly. C. For privatization to become successful, countries should adopt communism. D. When newly privatized firms are extensively protected from foreign competition, they have […]
QUESTION The government of Greenland Republic protects its newly privatized firms from foreign competition by imposing stringent barriers to international trade and foreign direct investment. As a result of this, the newly privatized firms will: A. continue acting like state monopolies. B. operate at their maximum efficiency. C. pay huge taxes. D. import raw materials […]
QUESTION Which of the following creates an unfavorable environment for innovations and entrepreneurship? A. Market economy B. Economic freedom C. State monopoly in production D. Privatization E. Strong legal protection of property rights ANSWER C In a planned economy, the state owns all means of production. Consequently, entrepreneurial individuals have few economic incentives to […]
QUESTION According to the author Francis Fukuyama, the world is most likely witnessing the end of: A. free market economies. B. capitalism. C. liberal democracies. D. privatization. E. humanity’s ideological evolution. ANSWER E Author Francis Fukuyama has argued, “We may be witnessing . . . the end of history as such: that is, the […]
QUESTION Which of the following creates an environment that is conducive to product and process innovations and to entrepreneurial activity? A. Communism B. Centrally planned economy C. Privatization D. Command economy E. Lack of strong property rights ANSWER C Economic stagnation occurred in many mixed economies in those sectors where the state had a […]
